Sundry Debtors and Sundry Creditors :

In the ledger there are many personal accounts, some of them may show debit balances, some others may show credit balances. If all the names are to be written in the trial balance it will be unduly long. Therefore, a list of names with the debit balances is prepared. This list is known as ‘Sundry Debtors’ (Sundry means ‘many’). Similarly, a list of names with the credit balances is prepared. This list is known as ‘Sundry Creditors’.

Illustration :

The following balances were extracted from the ledger of Rahul on 31st March, 2003. You are requested to prepare a trial balance as on that date in the proper form.

Rs.

Rs.

Salaries	36,320	Purchases	1,44,670
Sales	1,73,500	Sundry Debtors	1,430
Plant & Machinery	34,300	Travelling Expenses	2,630
Commission Paid	1,880	Carriage Inward	240
Stock on 1.4.2002	11,100	Sundry Creditors	14,260
Repairs	1670	Capital, 1.4.2002	62,500
Sundry Expenses	460	Drawings	3,500
Returns Inward	1,000	Cash at Bank	1,090
Discount Allowed	1,150	Returns Outward	400
Rent and Rates	3,220	Investments	6,000

 

Solution:

 

Trial Balance ofRahul
as on 31st March, 2003

S. No.	Name of the Account	L.F	Dr. Rs.	Cr Rs.	Nature of Balance (Why Dr. or Cr.)
1.	Salaries		36,320	—	Nominal A/c-expense
2.	Sales		—	1,73,500	Real A/c – goods
3.	Plant and Machinery		34,300	—	Real A/c – asset
4.	Commission Paid		1,880	—	Nominal A/c expense
5.	Stock on 1.4.2002		11,100	—	Real A/c – goods
6.	Repairs		1,670	—	Nominal A/c-expense
7.	Sundry Expenses		460	—	Nominal A/c-expense
8.	Returns Inward		1,000	—	Real A/c – goods
9.	Discount Allowed		1,150	—	Nominal A/c – loss
10.	Rent & Rates		3,220	—	Nominal A/c-expense
11.	Purchases		1,44,670	—	Real A/c – goods
12.	Sundry Debtors		1,430	—	Personal A/c —customers
13.	Travelling Expenses		2,630	—	Nominal A/c-expense
14.	Carriage Inward		240	—	Nominal A/c-expense
15.	Sundry Creditors		—	14,260	Personal A/c —suppliers
16	Capital 1.4.2002		—	62,500	Personal A/c – owner
17.	Drawings		3,500	—	Personal A/c – owner
18.	Cash at Bank		1,090	—	Real A/c – asset
19.	Returns Outward			400	Real A/c – goods
20.	Investments		6,000	—	Real A/c. – asset
	TOTAL		2,50,660	2,50,660

 

Note: The last column given in the solution does not appear in practice. It is included here to illustrate the following generalised rules, that

i) a debit balance is either an asset or loss or expense; and

ii) a credit balance is either a liability or income or gain.